There is just never enough one can read about the topic of making/finding/investing money. I was having a beer with my friend last night and she mentioned the book “Atlas Shrugged”. Its been high on my “To-Read” list and after hearing her talk about it I am now determined to get into it. Regardless, the comment she made from the book was that one thing that set America apart with regards to money was the idea of “Making Money”. As if out of nothing, it is an art…chew on it for a while and just for some light reading, here is 5 Things Investors look for….
1.Investors will want to see your background in the industry and business experience as well as that of your management team. Many small businesses fail because of weaknesses in the management team.
2.Not only do you need to show how your product is unique, you need to prove that there is a demonstrated need for your product or services and a large enough market potential to make the investment worthwhile. Investors don’t want to invest in “little” ideas - you have to show them the potential to be a big success.
3.No matter how unique your product or service may be, you must show that you know your demographics and will reach your target market in an ongoing manner. Your pricing and sales strategy have to be clearly defined and in line with industry norms.
4.Investors want to know that you have acknowledged and researched your competition thoroughly. In addition, they will want to see how you plan to contend with your competitors and distinguish yourself. What will give you the competitive edge?
5.Investors expect to see a return on their investment. Therefore, they want to see realistic financial projections that show how long it will take for the business to show a profit and for them to recoup their initial investment. They will also want to see a clear exit strategy: a way to make a profit and move on to the next deal.
Excerpt from NYTimes